344.2 - Employee Payroll Deductions for Savings Bonds

Date: 12/18/1989

OPR: Administration/Office of Personnel

1. Purpose. This chapter outlines the general procedure for the purchase of United States Savings Bonds, Series EE, through the Voluntary Payroll Savings Plan.

2. Available Denominations. Series EE savings bonds may be purchased in denominations of 100, 200, 500, and 1,000 dollars through the Voluntary Payroll Savings Plan. Employees purchasing bonds in the 50, 75, 5,000, or 10,000 dollar denominations on February 1, 1988, may continue such purchases. These employees may increase allotment amounts and change inscriptions on their existing authorizations; however, requests for new allotments in the 50, 75, 5,000, and 10,000 dollar denominations and requests for changes to these denominations may not be made.

3. Mailing of Bonds. Bonds purchased by USGS employees are mailed by the Treasury Department, Washington, D.C., to the address shown on the authorization for the purchase of bonds.

4. Procedure.

A. Action by Employee.

(1) Authorization of Allotment. An employee authorizes deductions from their salary for the purchase of Savings Bonds by completing Treasury Department Form No. SBD 1928 (United States Savings Bonds Authorization for Purchase and Request For Change see Figures 1 and 2). The form is submitted to the Division of Payroll Operations, Payroll Processing Section, Bureau of Reclamation, Departmental Payroll Office (USGS), D-2651 Academy Place 1, 7333 West Jefferson Avenue, Denver, Colorado 80235. A transmittal Form (BOR 7-2211) should accompany the SBD 1928.

(2) Amount of Allotment. The minimum allotment for EE bond purchase is 3.75 dollars per biweekly pay period. Bond authorizations should be in aliquot parts (amounts which divide equally into the whole without a remainder) of the total purchase price of a single bond or a combination of two or more bonds.

(3) Changes in Authorization. To change biweekly allotments, the denomination of the bond to be purchased, registration information, or to cancel payroll allotments; the employee completes and submits to the Division of Payroll Operations, Treasury Department Form SBD 1928 (United States Savings Bonds Authorization for Purchase and Request for Change See Figure 1).

(4) Missing Bonds. Each affected employee shall report non-receipt of bonds or erroneous inscription data on bonds by memorandum to the Division of Payroll Operations, Review and Analysis Branch, D-2610, at address given in 4.A.(1).

(5) Mutilated Bonds. Bonds received in mutilated condition shall be returned to the Division of Payroll Operations for transmittal to the Treasury Department for reissuance.

(6) Lost Bonds. Bonds which are lost/stolen/destroyed after receipt shall be reported to: Division of Payroll Operations, Review and Analysis Branch.

(7) Withdrawals from Bond Account. No partial withdrawals may be made from the bond account. The total amount remaining in the employee's bond account may be refunded upon written request for cancellation or upon resignation.

(8) Identifying Numbers. The social security account number of the first named person (the registered owner or the first named co-owner) must be inscribed on all Series EE bonds. A savings bond allotment authorization that does not include the required social security account number must be canceled (I TFM 3-6030.70). It is not mandatory, but may be desirable, to include the taxpayer identifying numbers of the second named co-owner and beneficiary.

B. Action by Authorized Appointing Officers. Appointing officers stock Form SBD 1928 for use by new employees who may wish to participate in the Voluntary Payroll Savings Plan.

C. Action by Operating Offices. Operating offices stock Form SBD 1928 for use of employees in authorizing allotments or in changing established authorizations.

D. Action by Bureau of Reclamation, Division of Payroll Operations.

(1) Recording. The Division of Payroll Operations, Payroll Operations Section establishes and maintains bond account records of each employee's authorization for payroll allotments for the purchase of U.S. Savings Bonds.

(2) Accounting. The total bond allotments each pay period are disbursed from the appropriation from which the payroll is paid and are deposited in the bond fund account pending completion and purchase of bonds.